Smart grids and power supply reliability: The impact of demand response on future power mixes

The general consensus is that Smart Grids offer one of the most attractive solutions for tackling the issues facing the energy sector. However, one of the main challenges of Smart Grids is how to maintain or even increase the the electricity system´s level of reliability. When we implement the Demand Response concept and a reliability indicator in a prospective energy system model, Demand Response emerges as a potential solution to the environmental issues faced by current and future energy systems. When we constrain future power systems to a level of reliability that is as high as the current level, Demand Response brings a decrease the overall system cost. This analysis is illustrated by the case study of the Reunion Island, which aims to produce electricity using 100% renewable energy sources by 2030, and for which Smart Grids are also a potential solution for reaching this objective.